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Historical Trends in Income Inequality Quiz

#1

Which period in history saw a significant increase in income inequality in the United States?

1980s
Explanation

Rise of income inequality marked by policy shifts.

#2

Which region of the world generally experiences higher income inequality compared to others?

North America
Explanation

Marked by significant wealth disparities.

#3

What is the term for the process of measuring and comparing income inequality within a population?

Income distribution
Explanation

Assessment of wealth disparities.

#4

Who is credited with the development of the Gini coefficient, a measure of income inequality?

Corrado Gini
Explanation

Named after Italian statistician.

#5

Which economic theory suggests that income inequality is necessary for encouraging innovation and productivity?

Trickle-down economics
Explanation

Belief in benefits trickling down from the wealthy.

#6

What is the name of the book written by Thomas Piketty that discusses the historical trends in income inequality?

Capital in the Twenty-First Century
Explanation

Analyzes wealth disparity over centuries.

#7

Which of the following factors contributed to the decline in income inequality during the mid-20th century in the United States?

Expansion of education opportunities
Explanation

Education's role in leveling the playing field.

#8

Which economist proposed the idea of a 'basic income' as a means to address income inequality?

Milton Friedman
Explanation

Advocated for unconditional cash transfers.

#9

What effect does technological advancement typically have on income inequality?

It increases income inequality
Explanation

Creates disparity in skill demands.

#10

Which country has one of the lowest levels of income inequality according to the Gini coefficient?

Sweden
Explanation

Known for its egalitarian policies.

#11

According to the Kuznets curve, what relationship exists between economic development and income inequality?

Income inequality decreases as economic development increases
Explanation

Pattern of initial rise then decline in inequality.

#12

What is the main critique of the Gini coefficient as a measure of income inequality?

It does not account for non-monetary forms of income
Explanation

Limited scope in assessing wealth distribution.

#13

Which of the following is NOT a common factor contributing to income inequality?

Universal healthcare
Explanation

Not directly linked to wealth distribution.

#14

Which country has the highest income inequality among OECD countries as of recent statistics?

Mexico
Explanation

Marked by significant wealth gaps.

#15

What role do inheritance and intergenerational transfers play in perpetuating income inequality?

They contribute to increasing income inequality
Explanation

Wealth perpetuation across generations.

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